Filed Under:Health Insurance, Ltci

When will Boomers' nest eggs crack?

Eliminating LTC risk could make some high earners' eggs last longer.
Eliminating LTC risk could make some high earners' eggs last longer.

Long-term care (LTC) costs could wreck the finances of many high-income Baby Boomers and members of Generation X after those consumers spend about 20 years in retirement.

Jack VanDerhei, an analyst at the Employee Benefit Research Institute (EBRI), makes that prediction in a set of forecasts made using the EBRI Retirement Security Projection Model.

Assuming the households had to handle 100 percent of ordinary expenses and 100 percent of LTC costs, and they were not eligible for help from Medicare or Medicaid with paying the LTC bills, about half of the households in the bottom quarter in terms of income would probably start running short of money after just one year in retirement, VanDerhei estimates.

See also: Products Baby Boomers need most, even if they don't know it.

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Nichole Morford

Nichole Morford
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